Developing a smart home pricing strategy is both an art and a science. You need to look at comparable sales, current market conditions, your neighborhood vibe and other various nuances. If priced appropriately, your home is more likely to attract a ton of interested buyers, leading to a quick sale and a hefty return on your home investment.
However, if a home is priced too high, buyers could be turned off right out of the gate. Once a home lingers on the market, buyers will wonder why it’s been on the market so long and might even assume there’s something wrong with it. It can be tough to reverse negative perceptions. Of course, underpricing your home is also a mistake. While our current market might turn that misstep into a bidding war, netting you a nice return, there's always the chance that not as many buyers will get the opportunity to see it before a lucky buyer snatches it up at a bargain price.
To ensure the best possible outcome, the price has to be right. That's why it's important to work with a uniquely qualified PorchLight agent. With a higher level of market education, local knowledge, plus industry-leading technology at their fingertips, your agent will price your home aggressively, but not excessively.
Let’s take a look at three key components that go into a winning, home pricing strategy.
1. Comparative Market Analysis (CMA)
Your agent will use a CMA to look at how sales are trending in your area, including current and past sales going back around three to six months. They’ll look at comparables (comps) with features similar to your home such as the number of bedrooms and bathrooms, square footage, lot size, location, the age of the home, and of course, the final selling price.
While finding comps exactly like yours may not be possible, your agent will be able to provide you with an initial price range. Together, you can then talk about other factors that will allow your agent to zero in on the best possible price to attract the most potential buyers when your home goes on the market.
2. What Sets Your Neighborhood Apart
You’ve heard the saying, “It’s all about location, location, location.” It’s true, and you’ll want to use that to your advantage. Work with your PorchLight agent to list out everything that gives your neighborhood an advantage. Are you close to light rail, entertainment, parks and trails, freeways, even a Trader Joe’s? What are the schools like and are they within walking distance from your home? Is your neighborhood up and coming with new restaurants opening and amenities being offered? Are there great views?
All of this can add to your asking price because buyers are often willing to pay for features that fit their needs, wants and desired lifestyle. After all, a buyer can typically change things they don’t like about a house—knock down a wall or put up some shiplap—but they can’t move it to a different location.
3. Updates, Upgrades, Age & Condition
When touring your home, potential buyers will likely appreciate shiny new kitchen cabinets and updated bathrooms. However, a savvy home hunter might investigate the age of your water heater and ask about your roof, especially since we have such intense hail storms here. And as soon as a buyer discovers one issue, they may begin to wonder what else might be wrong with the home.
If you want to spruce things up before selling, you can discuss your options with your PorchLight agent. As market and neighborhood experts, they will guide you through what changes or updates are worth addressing to bump up your listing price while netting you max return on investment. They may suggest a new furnace and painting your cabinets instead of doing a full kitchen overhaul. It might also just be best to fix simple things and catch up on basic home maintenance. So, be sure to talk it out.
Pro Tip: Detach from Emotional Attachments
We understand that your home is where you’ve made amazing memories. Your daughter may love her room painted in a vibrant pink. You may have a massive collection of garden gnome statues. But once it’s time to sell, the best thing to do is to try and approach things from the perspective of a buyer.
Your agent, and perhaps a PorchLight staging professional, may recommend anything from decluttering and cleaning to maintenance fixes and rearranging your furniture. While this isn’t a reflection of you or your personal style, their advice will ensure that the look of your home aligns with the asking price. If usable square footage can be visually maximized by taking out bulky furniture, or potential buyers feel like the home is move-in ready, generous offers will make the prep process well worth it.
Next Steps for Selling Your Home
Beyond comps, location and what wish list items your home checks off for buyers, your agent will look at what’s happening in the local real estate market and the economy as a whole. All this information will be carefully analyzed to come up with a smart pricing strategy. While it may not align with a “quickie” quote from other home selling websites, it will put you in the best position to sell quickly and for top dollar.
If you’re ready to move on from your current home, simply get in touch with an expert PorchLight agent who will be there to guide you through every step of the process, from prep to pricing to picking from all the offers you might receive. Happy home selling!